Colorado Psi Real Estate Practice Test with Complete Solutions

Colorado Psi Real Estate Practice Test with Complete Solutions Legal descriptions using the government survey system are NOT generally used in the original 13 states. Real property can be converted to personal property by severance A homeowner is willing to let his neighbor park an RV in his backyard. He does NOT want to make the permission permanent in case he dislikes others who might move next door in the future. What should he give his neighbor? A license. A broker hires a salesperson as an independent contractor. In order for the salesperson to be considered an independent contractor for federal income tax purposes, the broker's written contract with the salesperson MUST specify that the salesperson will not be treated as an employee for federal income tax purposes. The main difference between tenancy in common and joint tenancy is that with tenancy in common, when a co-owner dies, his undivided interest passes to his heirs. A property is encumbered by a first mortgage of $60,000 and a second mortgage of $23,500. The property has just been sold at a foreclosure auction to a speculating investor for $88,000. Assume that all costs of the foreclosure sale are included in these balances. Which of the following statements is FALSE regarding the distribution of funds? : The second mortgagee receives nothing unless he forced the foreclosure auction. A broker is showing a buyer one of his residential listings. The buyer says he wants to establish a day care center for seniors in the property. The property has been used as a day care center for no more than five children. How should the broker advise this buyer? Provide the buyer with contact information for the local planning and zoning office to confirm the zoning and determine whether it permits his use. A landowner wishes to build a neighborhood grocery store on a busy street in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission for this store? Conditional use permit or zoning variance If conditions for property use are included in a deed and these conditions are violated, what is the most severe potential penalty? A court may order the return of the property to the original owner. New sidewalks installed only on one particular street will probably be paid for by a special assessment. An appraiser MUST be licensed or certified to handle Federally related work on residential property valued at more than $250,000. According to the principle of progression, a three-bedroom, one-story home is MOST likely to bring the highest sales price if located in a neighborhood in which most homes are larger than the sale home. A formal appraisal will ALWAYS be REQUIRED when the lender wants to sell the mortgage to the secondary market. When compiling a competitive market analysis, a broker would look for comparable properties that were located near the property being listed. For a buyer, a DISADVANTAGE of a partially amortized or balloon payment loan is that at the end of the term, all remaining principal must be paid in a single large payment A broker and the buyers he represents are anxiously awaiting the closing on their new home. The closing is scheduled in 4 days. The buyers inform the